Geno, the Norwegian farmers co-operative responsible for exporting the prized cow's semen, has run a pilot project in the cold northern region of Inner Mongolia for the past four years, cross-breeding Norwegian Reds with local cattle.
But the project has now ground to a halt after Geno was refused a vetinary certificate.
"China is a huge market where 30 million doses of bovine semen are sold every year, Sverre Bjørnstad, the company's CEO, told the Tvedestrandsposten newspaper.
"The project was recommended and approved by the agricultural authorities in China, but we lack the veterinary regulatory approval. We consider that it appears to have something to do with the relationship between Norway and China."
Norway's Ministry of Agriculture and Food has contacted the Chinese food safety authority for help in the matter, but has so far received no reply.